FG Reverses Buhari’s VAT-free Policy For Airlines

Thursday September 11, 2025
By TheNewsDESK |

The Federal Government has said that from January 1, 2026, airlines would resume the payment of duties and Value Added Tax, VAT, on the importation of commercial aircraft, commercial aircraft engines, spare parts, and air tickets.

At a Business Webinar jointly organised by Aviation & Allied Business in collaboration with the Federal Inland Revenue Service, FIRS, with the theme: ‘Nigeria Tax Act (2025) & The Aviation Industry: Aviation Sector Enlightenment Initiative,’ the Assistant Director, Nigeria Revenue Service (formerly FIRS), Nkechi Umegakwe, said that there is no going back on the full implementation of the new Tax Reforms Act.

She said unlike what is currently obtainable; it will become mandatory from January next year for airline operators and other aviation companies to pay the Value Added Tax, VAT, in all of their services and operations.

Currently, airlines are exempted from the payment of import duties and VAT on the importation of commercial aircraft, commercial aircraft engines, spare parts, and air tickets, a policy implemented She insisted that all the above are now liable to VAT from January 1, 2026.